Why Your Demat Account Choice Matters for IPOs
While all demat accounts allow you to hold shares, the broker platform you choose significantly impacts your IPO application experience. From ease of application to additional features, the right choice can make your IPO journey smoother.
Key Factors for IPO-Focused Investors
1. IPO Application Interface
Look for brokers with:
- Dedicated IPO section with clear navigation
- Easy-to-understand application forms
- Real-time subscription data display
- Mobile app support for applications
2. UPI Integration
Ensure the broker supports:
- Seamless UPI-based applications
- Multiple UPI apps compatibility
- Clear mandate status tracking
3. IPO Information and Research
Valuable features include:
- IPO analysis reports
- Grey Market Premium (GMP) updates
- Subscription status alerts
- Allotment notifications
4. Charges and Costs
Consider:
- Account opening charges
- Annual maintenance charges (AMC)
- Transaction charges
- IPO application charges (usually free)
Top Brokers for IPO Investing
Zerodha
Pros:
- Largest broker by active users
- Clean Kite interface for IPO applications
- Good IPO information resources
- Low brokerage for selling
- Zero IPO application charges
Cons:
- ₹300 account opening fee
- ₹300 AMC (demat)
- No advisory services
Best For: Self-directed investors who value simplicity
Groww
Pros:
- Zero account opening charge
- Very user-friendly app
- Good for beginners
- Integrated mutual fund platform
- IPO notifications and alerts
Cons:
- Limited advanced trading features
- Research tools less comprehensive
Best For: Beginners and mobile-first investors
Upstox
Pros:
- Free account opening
- Low brokerage charges
- Good trading platform
- IPO section with GMP data
Cons:
- Customer support can be slow
- Platform occasionally has technical issues
Best For: Cost-conscious traders
HDFC Securities
Pros:
- Full-service broker with research
- Seamless banking integration
- Direct ASBA through net banking
- Strong customer support
Cons:
- Higher brokerage charges
- Account opening charges
- Higher AMC
Best For: HDFC Bank customers wanting integrated experience
ICICI Direct
Pros:
- Comprehensive research reports
- Banking integration for ICICI customers
- Reliable platform
- Good customer support
Cons:
- Higher charges overall
- Interface less modern than discount brokers
Best For: ICICI Bank customers wanting full-service experience
Comparison Table
| Feature | Zerodha | Groww | Upstox | HDFC Sec |
|---|---|---|---|---|
| Account Opening | ₹300 | Free | Free | ₹999 |
| AMC | ₹300/year | Free | Free | ₹750/year |
| IPO Application | Free | Free | Free | Free |
| UPI Support | Yes | Yes | Yes | Yes |
| GMP Data | No | Yes | Yes | No |
| Research | Basic | Basic | Basic | Detailed |
Opening Multiple Demat Accounts
For serious IPO investors, consider:
- You can have multiple demat accounts (different brokers)
- But only ONE application per PAN per IPO
- Different family members can have separate accounts
- Multiple accounts help if one platform has technical issues
Documents Required for Account Opening
- PAN Card
- Aadhaar Card
- Bank Account Details
- Passport-size Photograph
- Signature Sample
- Income Proof (for F&O trading)
Account Opening Process
Most brokers offer online account opening:
- Visit broker website or download app
- Fill in personal details
- Complete Aadhaar e-KYC
- Upload documents
- E-sign the account opening form
- Account activated within 24-48 hours
Post-Account Opening Checklist
- Link your bank account properly
- Set up UPI ID for IPO applications
- Enable notifications for IPO alerts
- Familiarize yourself with the IPO section
- Do a test application (small IPO) to understand the process
Conclusion
For most retail IPO investors, discount brokers like Zerodha, Groww, or Upstox offer the best value with user-friendly interfaces and zero IPO application charges. If you're an existing customer of HDFC or ICICI Bank, their respective broking arms offer convenient integration. The key is choosing a platform you're comfortable with, as the IPO application process itself is standard across all brokers.